Rep. Gabbard Calls for Limited Tax on Corporate Windfall Profits To Help Small Businesses
US Rep. Tulsi Gabbard (HI-02) introduced H.Res.1267, the Pandemic Crisis Excess Profits Tax. It calls for Congress to levy a limited-time tax on the excess profits of large corporations — the windfall amount beyond its average profits over the past several years due to the COVID-19 pandemic — and direct the funds collected to support small businesses.
“Big tech corporations and big box retailers are among those who have made excessive profits during the COVID-19 pandemic, while mom and pop shops are being forced to close their doors due to government-mandated restrictions,” Rep. Gabbard said. “Because of this, these large corporations will be better positioned with a competitive advantage over small businesses in a post-pandemic economy.
“Congress must reinstate the WWII-era excess profit tax used at that time to prevent war-time profiteering, and dedicate the funds collected to helping small businesses recover. Small businesses are the backbone of our economy and have borne the brunt of this crisis. We need to support our small businesses and make sure that they are able to thrive and compete.”
Background: H.Res.1267, the Pandemic Crisis Excess Profits Tax resolution calls on Congress to levy an excess profits tax on large corporations, like Amazon, Google, Facebook and Wal-Mart, which have seen windfall profits because of the COVID-19 pandemic.
The resolution proposes an additional tax, at a rate of 95%, on excess profits as calculated by subtracting their 2020 gross earnings from the average gross earnings of these companies from 2016-2019.
The resolution notes that excess profits taxes were originally adopted by Congress during WWI and WWII to “siphon off war profits” from companies profiting as a result of the war, and provide assistance to those who were struggling and who needed help the most.
According to a December national survey assessing the pandemic’s economic impact on small business, 1-in-4 small businesses will have to close their doors in the next six months if current economic conditions don’t improve. Meanwhile, 45 of the 50 largest U.S. companies turned a sizable profit between April and September.
Rep. Tulsi Gabbard has been hard at work keeping Hawai‘i residents updated regularly through e-newsletters and tele-town hall events regarding the COVID-19 coronavirus crisis and its impact on the country. You can read more about how she is fighting for families, frontline essential workers, to prevent the virus spread, and help the economy survive and recover from this crisis by visiting her COVID-19 resource webpage.